XRP is having a rough time as the crypto took a big hit overnight. Over the last 24 hours, XRP has lost 3% of its value, dropping from an intraday high of $2.25 to now trading for $2.09.
It hit its all-time high back in January and was worth $3.40 at the time, but it has dropped by 34% since then.
Why is this happening? First off, the tension between the U.S and China is increasing, and this is making investors feel uncertain. Trump also made a new rule that stops taxpayer money from being used to buy altcoins like XRP. On top of that, $697.45 million worth of trades were wiped out, which made prices fall even more, according to Coinglass.
According to data from Santiment, only 4,516 new XRP wallets were created last Sunday. This is the lowest recorded this year, and it means there’s less demand, which makes it harder for the price to go back up.
Morgan Stanley’s chief strategist, Michael Wilson, thinks the stock market will drop 5% in the first half of the year. If he’s right, it could mean more trouble for XRP and other crypto assets. Investors have already been pulling money out of risky assets such as crypto and shifting toward safer ones like government bonds.
But even with this sell-off, XRP is managing to hold a $2.10 support zone. Looking at the daily chart, the support zone has been protecting the price from a downtrend since December. It dropped as low as $2.08 over the weekend but bounced back to $2.17.
Still, most traders don’t feel very confident that the price will go back up. According to data from Coinglass, traders with short positions have put in over $372 million, while long-position traders have put in just $114 million. This means most traders are betting on XRP dropping even further.
Also Read: Will XRP Price Crash? 77% Traders are betting against XRP
